United States Mexico Agreement

In addition to the provisions of the original NAFTA, the USMCA draws heavily on the Trans-Pacific Partnership (TPP) and Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) trade agreements. On April 3, 2020, Mexico announced its readiness to implement the agreement and join Canada. [15] The agreement entered into force on 1 July 2020. [16] [17] [18] [19] In 1994, the United States, Mexico and Canada created the world`s largest free trade region with NAFTA, generating economic growth and helping to improve the standard of living of the population in the three member countries. By strengthening trade and investment rules and procedures, this agreement has proven to be a solid foundation for building Canada`s prosperity and has set a valuable example of the benefits of trade liberalization for the rest of the world. The new agreement between Canada, the United States and Mexico will serve to strengthen Canada`s strong economic ties with the United States and Mexico. On May 30, U.S. Trade Representative Robert E. Lighthizer presented to Congress a draft declaration on the administrative measures necessary to implement the Agreement between the United States, Mexico and Canada (USMCA and the new NAFTA), pursuant to the Presidential Trade Promotion Authority (TPA) Act 2015. The project will submit USMCA enforcement legislation to Congress after 30 days, or after June 29. In a letter [73] sent by a Republican to Nancy Pelosi, spokeswoman for the House of Representatives, and Kevin McCarthy, the minority leader of the House of Representatives, Lighthizer said that the USMCA was the gold standard in U.S. trade policy, which modernizes competitive digital commerce, intellectual property, and U.S. services and creates a level playing field for the United States.

Businesses, workers and farmers, an agreement that represents a fundamental reorientation of trade relations between Mexico and Canada. In order to increase cross-border trade, the United States has entered into an agreement with Mexico and Canada to increase their de minimis shipping value. For the first time in decades, Canada will increase from C$20 ($15.38) to C$40 ($30.77) for taxes. Canada also provides duty-free shipments of up to C$150 ($115.38). Mexico will continue to provide $50 tax-free de minimis and will also offer duty-free shipments worth $117. Dissemination values up to these levels would occur with a minimum of formal entry procedures, making it easier for more businesses, especially small and medium-sized enterprises, to be part of cross-border trade. Canada will also allow the importer to pay taxes 90 days after entry. USMCA countries must comply with IMF standards, which aim to prevent exchange rate manipulation. The agreement provides for the disclosure of market interventions. The IMF may be convened as an arbitrator in the event of a dispute between the parties.

[57] The provisions of the agreement cover a wide range of agricultural products, homelessness, industrial products, working conditions, digital trade and others. Among the most important aspects of the agreement are better access for U.S. dairy farmers to the Canadian market, guidelines for a greater proportion of automobiles produced in the three countries instead of being imported from other countries, and the maintenance of the dispute settlement system, similar to that contained in NAFTA. [35] [38] On March 1, 2019, many organizations representing the agricultural sector in the United States announced their support for the USMCA and asked Congress to ratify the agreement. They also called on the Trump administration to maintain NAFTA until the new trade agreement is ratified. [70] On March 4, however, House Ways and Means President Richard Neal predicted a « very hard » path through Congress for the deal. [71] Beginning March 7, senior White House officials met with members of house ways and means as well as moderate caucuses from both sides, such as the caucus solvers issue, the Tuesday Group, and the Blue Dog Coalition, in order to gain support for ratification. . . .